Home The WatchIndices news Yen Back On Ropes After Wins Against Dollar

Yen Back On Ropes After Wins Against Dollar

by Amwal Al Ghad English

The U.S. dollar rose against the Japanese yen Tuesday, marking a break in the yen’s recent gains stemming from concerns about a climb in Japanese government bond yields.

The dollar  bought ¥101.86, up from ¥101.09 late Monday. The euro  also moved higher against the Japanese currency, buying ¥131.44 compared with ¥130.58.

The yen had logged wins against the greenback over the past three sessions, as yields on Japanese government bonds scaled higher, although the Bank of Japan has been buying bonds in an effort to push yields lower. Lower yields are part of the Japanese government’s plan to spur economic growth by cooling borrowing costs for consumers and businesses.

Last week, a rise in the 10-year JGB yield to 1% for the first time in about a year, along with weaker-than-expected Chinese manufacturing data, sparked a rally in the yen. Japanese stocks, meanwhile, have struggled lately because of yen strengthening.

The yen got a further boost on Sunday after Bank of Japan Gov. Haruhiko Kuroda said the nation can handle climbing interest rates.

The dollar last week fell about 1.7% against the yen, according to FactSet, the sharpest weekly loss since early June 2012.

The dollar will likely be in focus later Tuesday, with the Conference Board expected to report consumer confidence increased in May. Also, due out is the S&P/Case-Shiller report on home values in March and for the first quarter overall.

Ahead of the data, the ICE dollar index , which measures the greenback’s movement against six other major currencies, rose to 83.907 from 83.700.

The WSJ Dollar Index , an alternative gauge of the currency’s moves against a slightly wider basket, rose to 75.53 from 75.25.

The euro  traded at $1.2899, down from $1.2931 on Monday, and the British pound  fetched $1.5082, trading below Monday’s level around $1.5135.

The Australian dollar  was buying 96.21 U.S. cents, a decline from 96.31 U.S. cents.

The Aussie has been below parity with the U.S. unit for two weeks, hurt in part by worries about weaker demand for natural resources from China.

The Aussie’s move lower also follows a quarter-point interest-rate cut by Australia’s central bank earlier this month.

Ahram

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